Weekly Update: New Bull Market Begins to Find Its Footing
Good evening, and welcome to this week’s edition of Stealth Trades!
As we forecasted in last week’s update, stocks pushed higher this week as a new bull market begins to find its footing.
The downtrend that had become all too obvious was breached, and the index found support at the moving averages.
Beneath the surface, things look positive as well.
The Nasdaq index has seen more stocks making new highs than new lows for 15 straight days – the longest streak since August.
73% of stocks now trade above their 50-day moving average – a proxy I use to determine the short-term trend of stocks.
And 55% trade above their long-term 200-day moving average.
These factors, combined with the Breakaway Momentum signal we got on January 12, leads me to the conclusion that we are in fact at the beginning of a new bull market.
Anything can happen, of course, but I would be surprised if the market is not substantially higher this time next year.
Needless to say, my focus is trading the long side right now and identifying stocks showing the most strength right now.
Here are a few names I’m watching right now:
Icosavax (ICVX)
ICVX is a biotech stock showing tremendous strength.
After the company’s respiratory virus vaccine showing promising phase 1 results, shares took off like a rocket.
It then consolidated, putting in a series of shallowing pullbacks as the market digested sellers looking to take profits after the big run up.
The stock never broke below its 21-day moving average and has been holding its 10-day since the start of the year.
Shares broke out Friday morning, triggering us to send a buy recommendation on the stock.
Bilibili (BILI)
BILI is a Chinese video content company.
After a huge stage 4 decline throughout 2021 and 2022, shares seem to have finally found a bottom.
The stock has tripled off its lows since October and now forming a breakout consolidation pattern.
Notice the series of shallowing retracements over the last two months.
I will consider buying on a move above 28.20 or a pullback to the 21-day EMA near 26.00.
Cooper-Standard Holding (CPS)
The copper market is hot right now, and a lot of the copper mining names are making big moves to the upside.
One of the cleanest charts I’ve seen is CPS.
Notice the huge, steady accumulation from late December through mid-January – 13 trading days in a row of higher highs and lower lows.
This is a clear sign of institutional accumulation.
After a brief pullback to its 10-day EMA, the stock is again turning higher.
This looks like the start of a big uptrend in copper.
Best wishes for your trading,
Ross Givens
Editor, Stealth Trades